The US Mission to Vietnam and the Ministry of Industry and Trade (MoIT) launched a US$3.25-million activity to facilitate digital trade, supported by the US Agency for International Development (USAID).

The activity has been realized through a signing ceremony of a Memorandum of Understanding between the two sides today [October 13]. It comes as part of the new US – Vietnam Comprehensive Strategic Partnership announced during US President Joseph Biden’s visit to Vietnam last month.

An overview of the signing ceremony of the event. Photo: USAID Vietnam

“During his recent visit, President Biden emphasized the US’ commitment to supporting Vietnam to compete in a digital global economy,” said USAID/Vietnam Mission Director Grubbs. “We are pleased to sign an MOU with MoIT. This new digital trade activity led by USAID and MoIT is our first to be launched under our two countries’ newly upgraded partnership and will go a long way toward unleashing the potential of digital trade to form a key driver of the country’s continued growth.”

USAID’s three-year activity, called Vietnam Digital Trade, supports MoIT’s implementation of policy frameworks that facilitate digital trade, in consultation with the private sector. Regulations responsive to the private sector need to remove trade bottlenecks and increase regulatory transparency, helping to shape an e-commerce sector where enterprises of all sizes can benefit.

In addition, the activity encourages small and medium enterprises to participate in digital trade by introducing new business models and other best practices, such as traceability of goods, as well as facilitating cross-border connections between enterprises via MoIT’s digital trade promotion platform, called DECOBIZ. 

The project supports business associations such as the Vietnam Chamber of Commerce and Industry and the Vietnam E-commerce Association to promote digital trade across the country. The project works through MoIT and business associations to target female-owned enterprises and minority communities in support of inclusive economic growth.

USAID’s Vietnam Digital Trade activity advances the US Indo-Pacific Economic Framework for Prosperity, under which Vietnam and the US partner to harness innovation and pursue high-standard rules of the road in the digital economy to drive continued growth. 

This activity builds on the US’ successful partnership with Vietnam over the past two decades facilitating increased trade and improving the business-enabling environment.